Sandvik has announced it will divest its Mining Systems division to private equity firm CoBe Capital.
“Divesting the Mining Systems is an important step in consolidating Sandvik to its core operations, which for Sandvik Mining and Rock Technology is high technology mining equipment and aftermarket offerings,” Björn Rosengren, Sandvik’s CEO, said.
According to a Sandvik spokesperson the only Australian operations to be affected is the Bayswater facility, in Perth, which produces conveyor pulleys, rollers, and frames for mining.
The sale valuation has not been disclosed, however it is understood Sandvik will incur a capital loss of 800 million Krona ($123 million) in the third quarter of 2016.
This loss includes a negative cash flow position of 600 million Krona ($92.5 million) from the removal of the division.
The Mining Systems division designs, engineers, and supplies materials handling systems or the resources industry, and employed 1100 workers globally, and had sales of 5 billion Krona ($771 million), accounting for six per cent of Sandvik’s revenues.